VOCATIONAL EDUCATION AND TRAINING (COMMONWEALTH POWERS) BILL

Second Reading

Second reading.

The Hon. R.P. WORTLEY (Minister for Industrial Relations, Minister for State/Local Government Relations) (16:26): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

One of our ongoing challenges, for the country and for this State, is ensuring that all Australians, and all students who come here from overseas to study, have access to the best available education and training that will enable them to operate and compete in a globalised world.

A key step to achieving this is by becoming more nationally consistent and rigorous in the way we register, accredit and monitor courses and providers and the way we enforce performance standards in the vocational, education and training sector (the VET sector).

Earlier this year, the Commonwealth Parliament passed the National Vocational Education and Training Regulator Act 2011 and the National Vocational Education and Training Regulator (Transitional Provisions) Act 2011. This legislation provides for the establishment of a national regulator (the National VET Regulator) that will drive better quality standards and regulation across the Australian VET sector.

This legislation gives effect to the 2009 Council of Australian Governments (COAG) agreement to create a national VET regulator, responsible for registering training organisations and accrediting courses. The National VET Regulator will also regulate services to overseas students by VET providers under the Education Services for Overseas Students Act 2000 of the Commonwealth.

The National VET Regulator will operate under a referral of powers from the States. The legislation before the House is to allow for the transfer of South Australian powers through the adoption of the abovementioned Commonwealth Acts.

The 2 non-referring states, Victoria and Western Australian, who were not signatories to the 2009 COAG agreement, will enact mirror legislation to ensure consistent application of the national standards, noting the COAG agreement that all registered training organisations wishing to operate in more than 1 jurisdiction or enrol international students will be registered through the National VET Regulator.

The matters that are being referred to the Commonwealth are limited to those necessary for the effective operation of the national regulator, combined with a further referral which will allow the Commonwealth Parliament to make amendments to the Commonwealth law in consultation with States and Territories.

There will be consequential amendments that will need to be made to the Training and Skills Development Act 2008 arising from the referral of powers to the Commonwealth. Early in 2012, the Tertiary Education Quality and Standards Agency Act of the Commonwealth will also come into effect for the regulation of higher education providers. Once full transition to both regulators has been achieved, consequential amendments to the State's Training and Skills Commission Act 2008 will be brought forward.

Funding for the National VET Regulator will be provided by the Commonwealth Government for a period of 4 years and it will then operate on a cost recovery model. There will be no budget impact on the general operating costs for the State Government resulting from the transition to the national regulator, as reductions in regulatory fee revenue will be offset by a reduction in expenditure on regulatory activities.

Following enactment of this Bill, State regulation for VET will transition to the National VET Regulator (the Australian Skills Quality Agency (ASQA)) toward the end of this year. The Department has been working with ASQA and the providers to ensure a smooth transition.

Establishing the National VET Regulator is one of the most significant reforms to the sector in years. It is an initiative strongly supported by VET practitioners and providers, and by employers, industry skills councils and unions. It will work collaboratively with these stakeholders and other regulators to provide targeted, rigorous and transparent compliance regulation to assure the highest quality of VET delivery for students, industry and community.

As noted in the introduction, ensuring rigorous quality assurance of vocational education and training is critical to increasing the skills and qualifications of individuals which will drive up the productivity of our economy. Moving towards a national regulation system is critical to achieving this outcome. It will maximise the efficacy and efficiency of the VET sector, and provide greater assurances about the quality of our VET providers and the outcomes of that provision, which will benefit training organisations, learners and industry.

This Bill before you is a critical step along this path and I therefore commend it to the members of this House.

Explanation of Clauses

1—Short title

This clause is formal.

2—Commencement

This clause provides that the measure will come into operation on a day to be fixed by proclamation. The clause also disapplies the operation of section 7(5) of the Acts Interpretation Act 1915 in relation to the measure.

3—Definitions

This clause sets out the definitions of words and phrases used in the measure. See, in particular, the following definitions:

National VET legislation means—

(a) the National Vocational Education and Training Regulator Act 2011 of the Commonwealth; and

(b) the National Vocational Education and Training Regulator (Transitional Provisions) Act 2011 of the Commonwealth,

as in force from time to time;

relevant version of the National VET legislation means—

(a) the National Vocational Education and Training Regulator Act 2011 of the Commonwealth; and

(b) the National Vocational Education and Training Regulator (Transitional Provisions) Act 2011 of the Commonwealth,

as in force immediately before the commencement of clause 4 of the measure.

4—Adoption of National VET legislation

Clause 4 provides that the relevant version of the National VET legislation is adopted within the meaning of section 51(xxxvii) of the Constitution of the Commonwealth. The adoption will have effect only for the period beginning when this clause commences and ending at the end of the day fixed for that purpose (if any) under clause 5.

5—Termination of adoption

This clause makes provision for the Governor, by proclamation, to fix a day as the day on which the adoption is to terminate. Such a proclamation may be revoked by further proclamation (provided that the revocation proclamation is published before the day fixed in the earlier proclamation for termination of the adoption).

6—Referred VET matters

This clause sets out each of the matters that is a referred VET matter. These are as follows:

the registration and regulation of vocational education and training organisations;

the accreditation or other recognition of vocational education and training courses or programs;

the issue and cancellation of vocational education and training qualifications or statements of attainment;

the standards to be complied with by a vocational education and training regulator;

the collection, publication, provision and sharing of information about vocational education and training;

investigative powers, sanctions and enforcement in relation to any of the above.

The clause then provides that a referred VET matter does not include the matter of making a law that excludes or limits the operation of a State law (that is, any Act of the State or any instrument made under such an Act) to the extent that the State law makes provision with respect to—

primary or secondary education (including the education of children subject to compulsory school education); or

tertiary education that is recognised as higher education and not vocational education and training; or

the rights and obligations of persons providing or undertaking apprenticeships or traineeships; or

the qualifications or other requirements to undertake or carry out any business, occupation or other work (other than that of a vocational education and training organisation); or

the funding by the State of vocational education and training; or

the establishment or management of any agency of the State that provides vocational education and training.

7—Reference of matters

This clause makes provision for the amendment reference. Each referred VET matter is referred to the Parliament of the Commonwealth, but only to the extent of the making of laws with respect to such a matter by making express amendments of the National VET legislation.

The reference of a matter under this clause has effect only—

if and to the extent that the matter is not included in the legislative powers of the Parliament of the Commonwealth (otherwise than by a reference under section 51(xxxvii) of the Constitution of the Commonwealth); and

if and to the extent that the matter is included in the legislative powers of the Parliament of the State.

The amendment reference will have effect until terminated under clause 8.

8—Termination of reference

This clause makes provision for the Governor, by proclamation, to fix a day as the day on which the amendment reference is to terminate. Such a proclamation may be revoked by further proclamation (provided that the revocation proclamation is published before the day fixed in the earlier proclamation for termination of the amendment reference).

9—Amendment of Commonwealth law

This clause is included to avoid doubt and provides that it is the intention of the Parliament of the State that—

the National VET legislation may be expressly amended, or have its operation otherwise affected, at any time by provisions of Commonwealth Acts the operation of which is based on any legislative powers that the Parliament of the Commonwealth has on account of a reference of any matters, or the adoption of the relevant version of the National VET legislation, under section 51(xxxvii) of the Constitution of the Commonwealth; and

the National VET legislation may be expressly amended, or have its operation otherwise affected, at any time by provisions of Commonwealth Acts the operation of which is based on legislative powers that the Parliament of the Commonwealth has apart from a reference of any matters, or the adoption of the relevant version of the National VET legislation, under section 51(xxxvii) of the Constitution of the Commonwealth; and

the National VET legislation may have its operation affected, otherwise than by express amendment, at any time by provisions of National VET instruments.

10—Effect of termination of amendment reference before termination of adoption of Commonwealth Acts

This clause provides that if the amendment reference is terminated but the adoption of the relevant version of the National VET legislation is not terminated, the termination of the amendment reference does not affect—

laws that were made under the amendment reference (but not repealed) before that termination (whether or not they have come into operation before that termination); or

the continued operation in this State of the National VET legislation as in operation immediately before that termination or as subsequently amended or affected by—

(i) laws made under the amendment reference that come into operation after that termination; or

(ii) provisions referred to in paragraph (b) or (c) of clause 9.

Accordingly, the amendment reference continues to have effect for the purposes of this clause unless the adoption is terminated.

Schedule 1—Ancillary arrangements

1—Interpretation

This clause contains definitions of Commission and National VET Regulator for the purposes of clause 2 of the Schedule.

2—Commission may provide information and assistance to National VET Regulator

This clause provides that, despite any other Act or law, the Commission is authorised to provide to the National VET Regulator or an agency of the Commonwealth (whether at the request of the Regulator or the agency or otherwise)—

such documents and other information in the possession or control of the Commission that may reasonably be required by the Regulator or agency in connection with the performance or exercise of its functions or powers under the National VET legislation; and

such other assistance as is reasonably required by the Regulator or agency to perform or exercise a function or power under the National VET legislation.

3—Regulations

This clause provides the Governor with the ability to make regulations of a saving or transitional nature consequent on—

the enactment of this measure; or

the transition from the application of provisions of the Training and Skills Development Act 2008, or any other law of the State otherwise relating to vocational education and training, to the application of provisions under the National VET legislation.

Debate adjourned on motion of Hon. T.J. Stephens.